NUPRC has warned holders of petroleum prospecting licences that it will enforce the “Drill-or-Drop” provisions of the Petroleum Industry Act 2021 against non-performing oil and gas acreages. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) gave the warning in a circular dated September 14, 2026, signed by its Commission Chief Executive,……
NUPRC has warned holders of petroleum prospecting licences that it will enforce the “Drill-or-Drop” provisions of the Petroleum Industry Act 2021 against non-performing oil and gas acreages.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) gave the warning in a circular dated September 14, 2026, signed by its Commission Chief Executive, Oritsemeyiwa Eyesan, and addressed to holders of Petroleum Prospecting Licences awarded under the 2020 Marginal Field Bid Round, the 2022/2023 Mini Bid Round and the 2024 Licensing Round.
The Commission said the enforcement is part of the Federal Government’s drive to increase petroleum production by ensuring that licensed acreages are actively worked and operators meet their approved work programmes within the timelines prescribed by law.
NUPRC said, “The Commission accordingly gives notice that it intends to enforce these provisions in respect of all non-performing acreage, including by refusing extension, requiring relinquishment, calling in the work performance security and commencing revocation proceedings.”
It explained that a Petroleum Prospecting Licence is granted for a defined initial exploration period, with any extension conditional on the fulfilment of the applicable work commitments.
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According to the regulator, the licence obligations include the terms contained in the licence instruments, General Licence Conditions, Concession Contract, Minimum Work Programme and Work Performance Security.
It said, “The Commission reiterates that the PIA proceeds on a simple principle: acreage is held to be worked, and acreage that is not worked within its term retums to the Federal Government.”
NUPRC, however, stressed that its objective was to increase production rather than force the forfeiture of licences, acknowledging that operators could face challenges relating to financing, rig availability, security, host community engagement, infrastructure, regulatory approvals and partner arrangements.
“The Commission’s objective is to increase production, not forfeiture,” the circular stated.
The regulator therefore directed licensees experiencing such challenges to notify it no later than October 31, 2026, providing details of their level of compliance with licence obligations, specific constraints affecting execution, proposed mitigation measures and revised implementation timelines.
NUPRC also warned that engagement with the Commission would not suspend the term of a licence or excuse a licensee from meeting its obligations under the law.
It further noted that disputes between partners could delay acreage development and urged licensees to ensure that partnership and financing agreements clearly address issues including participating interests, operatorship, deadlock, cash calls, default, assignment, change of control and binding dispute-resolution mechanisms.
“Internal disagreement will not excuse failure to meet licence obligations,” the Commission said.
The NUPRC said it would intervene or facilitate discussions where such action falls within its statutory mandate and could assist parties in resolving issues affecting the timely performance of their obligations.
The Commission’s latest directive builds on its previously stated policy of implementing the “Drill or Drop” provisions of the PIA to improve the performance of licences and leases and accelerate oil and gas development.
Licensees were urged to submit the required information within the stipulated period, while enquiries were directed to Bashari Indabawa, Executive Commissioner, Exploration and Acreage Management.
